August 2015 - Wambui Mburu - Wambui Mburu

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Is Your Pricing Strategy Hurting or Boosting Your Business?

Is your pricing strategy hurting or boosting your business cover

Is your pricing strategy hurting or boosting your business cover

Is your pricing strategy hurting or boosting your business?

As an entrepreneur, you may often wonder how to price your services so you are not undercutting yourself or lose clients due to what may seem like an overprice.  But I have come to find out that price is just one of the determining factors of whether a client decides to work with you.

In addition to the quality of your work, there are other reasons other than price that a client will pay for your services.  What you offer and how you offer will be a game changer in whether a client will want to work with you.

Here is the secret to pricing your services without hurting your business.

  1. Charge clients based on value

Charge clients based on the value you will deliver.  For example, if a client wants you to set up and manage their Facebook page and grow a community while converting them, here are good questions to ask:

  • How will a Facebook page help a business?
  • How will you know the Facebook page is successful for your business?
  • How much money do you lose without having a Facebook Page?

So dig deep and know what your clients needs are behind the project and how much real value it will offer. In this case, it’s not the number of fans that will bring in revenue for them, it will be the number of fans who will convert into paying customers that will matter.  This will help you know that you are billing what you are worth.

  1. Be professional and thorough in your quote

If you are not thorough in your quote, you will appear unprofessional.  For example if you just send an email saying “yes I can do this job for $3,000, there are several problems in this kind of quote:

  1. It does not show any details of the nature of work or the value it will deliver.
  2. It’s focused on price.
  3. It turns into a Yes or No because of it’s lack of details
  4. Many high value customers will dismiss it due to it’s informal nature.

Research shows that the right presentation of your fees to your clients can gain you more approved projects. Better still, it can even gain you more money for each project.

Here is an approach I found from www.sixrevisions.com.  Try it next time you are presenting your fees to your clients. It’s known as the bundled pricing technique.  Here’s how it would look like:

  1. Bundle your fees into a single solution

Instead of itemizing your rates like in this example:

Facebook page management – $500

Content creation – 1,000

etc…

Create a single solution with a price (do not include hourly information).  Name your solution based on what benefit it will bring to your clients problem.

Service Solution/Benefit Name Price #
Solution description Write the description for your service here
So to use our previous example of Facebook marketing funnel here’s is how it would look like.  Note: You can replace your type of services with mine here.
Service
Creating a Facebook marketing funnel
Price
$3,000
Solution description
This solution includes branding, content creation, list building and selling.

Branding: The focus will be on setting up and optimizing your Facebook page to lay your brands foundation, increase your social media presence and build a community.

Content creation: The focus will be to create a plan to post timely, relevant and value based content that will engage and ignite action with your fans, by getting more likes, comments, shares and clicks.

List Building:  The focus will be to use strategies to build a Facebook page with quality fans and turn those fans into email subscribers.

Selling: The focus will be to effectively craft Facebook promotions and create a plan to use a promotional calendar to effectively boost your sales.

As you can see, present your services in a way that will clearly show your customers the benefits that your services will give them.  If you show them clearly how you are going to save them time and money doing what you promise to do for them, they will pay for your services no matter the price.

How about you?  I’d like to hear your thoughts.  Leave a comment below and share any thoughts of pricing strategies you use that have boosted your business.

3 ingredients of a successful blog

3 ingredients of a successful blog

 

3 ingredients of a successful blog

There are 3 ingredients to a successful blog that influential bloggers such as Problogger’s Darren Rowse use.  What if I told you that you can adapt these tactics and have a blog that your fans rave about? Whether you are in the coaching, technology, health and fitness, or marketing business your ideal client wants to like, trust and know you before they can do business with you.

Writing a blog post helps you connect with people who are interested in a product, service or program that you can help them with.

Your blog is a great platform to build awareness of the problem you solve.  It is also a way of building relationships and confidence with your potential clients.

So with this in mind write content that has these three goals

Know

Like

Trust

  1. Content that will get people to know you.

When thinking about writing content ask yourself, “What type of content can I write that people are going to share?” Your posts are only a way of pulling people to get to know you.  Offer relevant, and valuable content that will get shared and get people to know you. When someone shares your post their friends get to know you.  Make sure that your content really resonates with your audience.  A blog post showcases your expertise while showing your personality and therefore letting people consider working with you as opposed to someone they don’t know.

  1. Content that will get people to like you.

We’ve all heard this one:  be a story teller. Share stories on a more personal level.  They could be on video or webinars. This helps people see your voice or face and start connecting with and liking you. Inspirational content or anything that helps people get motivated is a surefire share magnet. Also content that helps people to feel something or feel like they belong or content that changes peoples lives- such as teaching them step by step to do something.

Share what you know or mistakes you made that you now know to avoid. When people see that you know what you are talking about they now go a step further from liking you to trusting you.

  1. Content that will get people to trust you.

In their 2006 report Edelman Trust Barometer, a global PR firm which reports on the trust level of people to NGOs, governments and businesses across 23 countries, participants said they were more likely to trust “a person like me”.  Those whom they could relate to and who are like them. The good news is that when you are the authority in your community then people will trust you.

A couple of things to build trust with your audience are: 

  • Be honest about your business.

Times have changed and we are seeing more solopreneurs everywhere.  Do not pretend to have a multinational business while in truth it’s just you and your dog Buddy.

  • Be honest about your expertise

In this day where everyone has become an expert it is easy to call yourself an expert. Sharing what you know and pointing out what you are really not good at makes people relate to you.  For instance I am not techie at all.  So when I am showing a step by step video on how to use a Facebook feature and it involves a technical part such as copying a code,  I let people know that, that part of the particular feature I am not good at and it would be valuable for them to hire an expert to help them in that area.

Finally, don’t forget to mention how you can help

When you put out an article in your blog, every now and then mention the services that you offer in a non salesy way so the reader does not get swamped in the blog and forget the services that you offer.  For instance if you write a blog on how to lose 30 pounds in one month, mention that you offer one on one coaching or a free consultation to anyone who is looking to lose weight and get fit.  The key thing is to do it in a way that you are not trying to sell your services on the blog.

As you grow and build an audience through your blog, you will find great intel about your ideal audience’s needs wants and struggles. By people knowing, liking and trusting you, you will see which posts are most popular by either the comments they get or by the way they have been shared by your audience.

Their challenges will help you tailor make your services or products with them in mind.  For instance if you are a business coach and you find that your posts about productivity are getting more comments and shares, then you can gather that creating a program on how your audience can save time and achieve their goals would be well received.

I have created a free cheat sheet for you to print out and put it next to your computer so you can use it every time you write a blog. Click here to download it.

CLICK HERE TO INSTANTLY DOWNLOAD MY FREE CHEAT SHEET: “3 INGREDIENTS TO A SUCCESSFUL BLOG.”

So what are you waiting for?  Go ahead test out these 3 ingredients for your next blog post.  Do you use your blog to build awareness of the problems you solve? Let me know in the comments section below.